LLQP Exam Question 31
Ashley meets with her life insurance agent for a needs analysis. She wants her two kids, currently nine and seven, to be well provided for in the event of her untimely death. Ashley is also concerned about the tax liability that her RRSPs will create for her children. Her need for life insurance is determined to be $800,000 to support the children and $50,000 for the tax liability.
Ashley decides to purchase a term life insurance policy to provide for her young children if need be, and a permanent policy for the tax liability.
How should Ashley set up the beneficiary designations?
Ashley decides to purchase a term life insurance policy to provide for her young children if need be, and a permanent policy for the tax liability.
How should Ashley set up the beneficiary designations?
LLQP Exam Question 32
Lara, owner of Huck's Oil Change Ltd., meets with a life insurance agent to discuss a renewal package for the group benefits plan offered to employees. Lara employs 20 individuals, all of whom are covered under the group plan. The employee turnover rate is 10%, and the insurer has rated the group's claims experience credibility at 20%. In establishing the group's premiums under the new plan, how much weight will the insurer give to the standard manual rate for a comparable group?
LLQP Exam Question 33
Danny purchases a $1,000,000 whole life insurance policy. He names his three daughters, Donna-Joe, Stephanie, and Michelle, as revocable beneficiaries with each receiving one-third of the death benefit.
If Michelle predeceases Danny, and Danny did not have a chance to modify his beneficiary designation, how will Danny's death benefit be paid out?
If Michelle predeceases Danny, and Danny did not have a chance to modify his beneficiary designation, how will Danny's death benefit be paid out?
LLQP Exam Question 34
Julie is a stay-at-home single parent with an eight-year-old son, Justin, who has severe intellectual disabilities.
Julie's mother, Lucille, who died recently, used to help Julie financially, especially for Justin's special needs.
She wanted this assistance to continue after her death. To this end, she designated Justin as beneficiary of her RRSP, now worth about $100,000. Julie would like this amount to be transferred to a plan that would eventually provide Justin with an annual income, which she would administer. She would like a plan that is eligible for government grants.
To which plan should Julie transfer the funds?
Julie's mother, Lucille, who died recently, used to help Julie financially, especially for Justin's special needs.
She wanted this assistance to continue after her death. To this end, she designated Justin as beneficiary of her RRSP, now worth about $100,000. Julie would like this amount to be transferred to a plan that would eventually provide Justin with an annual income, which she would administer. She would like a plan that is eligible for government grants.
To which plan should Julie transfer the funds?
LLQP Exam Question 35
Donald is married and has two children, ages 3 and 5, one of whom is severely disabled and will never be able to live independently. He is considering buying $500,000 of life insurance to guarantee care for his disabled child for his lifetime. He also wishes to insure his 20-year mortgage of $250,000 to ensure that his family can remain in their home in the event of his death.
What life insurance policy would you recommend to Donald?
What life insurance policy would you recommend to Donald?